It’s hard to believe that it is already June. With the end of financial year (EOFY) fast approaching we recently caught up with Patrice from Mondays Bookkeeping to chat about business sentiment around EOFY and her top tips to help you get ahead. Take it away, Patrice.
There’s no denying this year has been incredibly difficult for business owners, especially those who have bank loans for personal or business use. Some business owners I work with are stressed and really feeling the cost of living spikes. This stress snowballs from suppliers hiking up their prices of materials and goods, translating to business owners having to increase their prices. Because of this, consumers don’t seem to be freely spending on things that aren’t essential to them, which means a lot of the creatives I work with are taking the hit. It almost seems like it’s coming from every angle.
Approaching EOFY here’s what business owners are thinking about.
Tax planning: purposely planning around June 30th and using the current or next financial year to their advantage.
Intentional spending: the time of year to be smart with how money is spent in your business, perhaps thinking about some larger purchases that you can claim on tax.
Reset: the middle of the year can be a time to reset and regain intention. Six months down, six to go.
Key dates to remember
30th June: The end of financial year & end of June quarter.
30th June: Single Touch Payroll (STP) to be finalised before 30th June.
14th July: Payment summaries due. Employees should be able to access their payment summaries (group certificates) from the 14th July and lodge their tax return.
28th July: June quarterly superannuation contributions due.
28th July: June quarterly BAS due.
Tip: Be sure to pay your ATO payments before the due date so payments are processed and received by the due date.
Plan your tax ahead of time
Now is the time to book a tax planning meeting with your accountant. This is a key moment when your accountant can recommend a plan to help manage your tax bill before EOFY. This could include intentional spending, perhaps help navigate extra contributions to your super fund, or claim depreciation on those larger purchases.
Check-in with your financial plan
Last time we spoke I suggested creating a yearly financial plan. Now being June, have you looked at it since? Are you hitting your targets and goals? Is your income coming from places you thought it would? Now is the time to think about alternative income streams. So that by the end of the calendar year you’re on track to accomplish hitting your financial targets. Assess what’s working and what’s not, it’s okay to pivot or introduce new offerings if something isn’t working.
Some business owners find it helpful to use this half way marker to reset. I often find the day-to-day work challenges can become monotonous or tiresome, especially as the colder weather is creeping in. Something as simple as changing your daily routine can make the world of difference, perhaps making an effort for a morning walk before work each day. Use the time to regain intention and reflect on your business plan.
This article is only for educational purposes and does not constitute legal, financial or tax advice. Make sure you consult a professional regarding your unique business needs.